Zepto receives SEBI approval for $1B IPO
What's the story
Zepto, the quick commerce start-up known for lightning-fast grocery deliveries, has received the green light from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), according to The Economic Times. The company plans to raise up to $1 billion (around ₹7,500-₹9,300 crore), bringing it one step closer to being listed on Indian stock exchanges.
Listing details
Course to become India's 1st pure-play quick commerce IPO
Founded in 2020, Zepto is on course to become India's first pure-play quick commerce company to go public. With SEBI's approval in hand, the company plans to update its official documents and hopes to complete the listing within 60-90 days. This would make Zepto one of the fastest start-ups in its industry to hit the stock market.
IPO specifics
IPO size expected around ₹8,000-9,000 crore
Zepto's IPO is expected to be around ₹8,000-9,000 crore in size. The Bengaluru-based company had confidentially filed its draft red herring prospectus (DRHP) last December for an IPO of ₹11,000-12,000 crore. However, the final issue size and pricing are yet to be finalized and could still change. In a highly competitive market space, Zepto competes with listed players such as Eternal and Swiggy.
Financial outlook
Zepto aims for post-tax profitability by FY29
Zepto currently has around ₹6,000-7,000 crore in cash on its books. The company has been pitching a plan to achieve full-year post-tax profitability by FY29 while maintaining a 25-30% quarter-on-quarter growth rate. Despite the overall moderation in quick commerce growth and platforms cutting back on investments, Zepto has been pushing for scaling order volumes without significantly expanding its dark store network.